OSLO, NORWAY: Quantafuel has strengthened its position in the UK by acquiring the remaining 50% of the shares in Quantafuel UK, as well as the project companies in Sunderland and Cheshire.
Quantafuel ASA has reached an agreement with strategic partner Midas Group AS to acquire the remaining 50% of the shares in Quantafuel UK Ltd, Quantafuel Sunderland Limited and Quantafuel Cheshire Limited. Following the agreement, Quantafuel ASA owns 100% of the three UK companies.
“This is an important step for us. We see a strong potential in the UK market and look forward to contributing towards the circular economy and help improve the UK’s plastic recycling rates. We are grateful for the active support from our long-term partner Midas Group who together with us has brought Quantafuel UK to its current position,” says Quantafuel’s CEO Lars Rosenløv.
“Quantafuel recently identified Sunderland as its first location in the UK with more to come, so both parties felt that the timing was right for Quantafuel to take full control of the UK subsidiaries, in line with the initial contracts from 2016,” Rosenløv continues.
“I have really enjoyed working with the talented and dedicates team in Norway and the UK and being part of establishing Quantafuel’s future UK footprint,” says Frank Ystenes, one of Quantafuel’s early-stage investors and Chairman of Midas Group.
He continues: “I am looking forward to following the development with great interest as a significant shareholder in Quantafuel ASA and will be happy to contribute with my continued support.”
The transaction value is to be paid in cash or shares at Quantafuel’s discretion, split in three performance-based tranches related to Proof-of-Concept in Skive and the establishment of new UK plants, with a total value of up to NOK 51.5 million.
The agreement has been completed following historic agreements with the parties. Any consideration shares will be issued under Quantafuel ASA board’s current authority to increase the share capital.
Further, Midas retains an option to participate in the two first Quantafuel plants in the UK with up to 5%, and Quantafuel retains the option to employ Midas Group in a consulting function.
Quantafuel’s project portfolio in the UK has grown over the past years, with key prospects in Sunderland and Cheshire. On 23 September 2021, Quantafuel announced that it has submitted a preliminary planning application for the Sunderland project, where Quantafuel has chosen a 50,000 m2 site in the Port of Sunderland.
Here, Quantafuel plans to build a plant that can process more than 100,000 tonnes of plastic per year, creating hundreds of jobs during construction and provide business for local suppliers.
Further planning and development work is also underway for Cheshire, and more information will be given in due course.